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- 1 AFC stock price: The stock is in a downtrend due to questionable decisions from the management.
- 2 The stock is down more than 23% in a year. Reveal the price forecast below.
- 3 The current stock price is consolidating after breaking a trend in July.
AFC Energy Plc (LON: AFC) is a Listed company that focuses on the advancement of fuel cells. The company aims to set up, possess, manage, and sustain fixed alkaline systems that produce efficient and long-lasting power through fuel.
The Skyfall
The shares of (LON: AFC) are more than 23% down since the last year, Along with the price the basic earning per share is also negative. As the stock crumbles, it is constantly breaking major support levels.
The reason
Earnings reports can answer all questions about this Skyfall in the shares. The recent half-yearly reports show stagnant and sometimes declining sales figures, which is one of the biggest red flags for any company.
The AFC stock is also experiencing unit economics loss with an average gross margin of negative 350%. It is later the reason for negative earnings per share over these years. These factors, combined with a significant cash burn and stagnant revenue growth, might be the reason for the consistent downtrend in the AFCL stock price.
Cash is trash?
One of the unusual management decisions is to keep a large chunk of cash in hand, when compared with its current liabilities and debt the cash is 11 times more. However, generally, it is seen as a positive sign, but the company is making negative revenue growth. It is still maintaining high amounts of dead assets, such as cash. That may be a questionable decision made by the management.
Technical Analysis and Prediction of AFC Stock Price
The AFC stock price has just broken a downtrend in July, after which the shares rose 43% in just 3 days. The stock price has been unable to break past the immediate resistance of £18.6 since then. Meanwhile, the support level for the bulls is at £14.84. The Relative strength index (RSI) is at 44, just below its neutral territory of 50.
The Current trading price is £14.84, the 50-day moving average price is £15.6, and the 150-day moving average price is £17.1. The price prediction for the AFC stock price will be bullish, given that the bulls will reclaim the current support. If they do, the predicted target price will be £19.56.
Conclusion
AFC Energy Plc (LON: AFC) is performing poorly on a fundamental basis. The company is neither growing revenue nor keeping the net profit. The stock price has been negative over a longer time frame. However, a few months back the bulls have broken a major downtrend, which has made the prediction bullish.
Technical Levels
Support: £14.8, and £11.3
Resistance: £18.6, and £22.0
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
